Sanford’s revenues, profit down in ‘09

By

SeafoodSource staff

Published on
November 24, 2009

New Zealand seafood giant Sanford Ltd. on Wednesday reported its results for fiscal 2009, which ended on 30 September.

After a difficult second half, the company posted revenues of NZD 433.1 million (USD 316.2 million, EUR 209.7 million) in 2009, down slightly from NZD 436.6 million (USD 319 million, EUR 211 million) in 2008; its second-half revenues amounted to NZD 204.7 million (USD 149 million, EUR 99 million), down from NZD 228.4 million (USD 167 million, EUR 111 million) in the second half of 2008. Sanford’s profit also dropped, from NZD 53.4 million (USD 39 million, EUR 25 million) in 2008 to NZD 39.1 million (USD 29 million, EUR 19 million) in 2009.

However, the company’s EBITDA (earnings before interest, tax, depreciation and amortization) reached NZD 68.4 million (USD 50 million, EUR 33 million) in 2009, up from NZD 65.9 million (USD 48 million, EUR 32 million) in 2008.

In its year-end statement, Sanford called the results “satisfactory.”

“While it is pleasing to report a continued improvement in underlying earnings, the strong results recorded in the first half of the year were not able to be repeated in the second half of the year as markets reacted to the global financial crisis and the United States currency conversion rate continued to impact,” said the company. “In the context of the weaker market prices for many species and the high value of the New Zealand dollar, particularly in the second six months, the overall result is considered satisfactory.”

“After a relatively strong first six months, steady declines in market prices coupled with a strong increase in the New Zealand dollar resulted in the second half profit before tax being less than 50 percent of the first half results,” added the company.

“Of particular concern was the effect on profitability created by the large number of New Zealand producers and exporters of greenshell mussels reducing prices to maintain market share. Prices fell from a record high of USD 2.50 per pound at the start of the year when the U.S. exchange rate was around NZD 0.50 to USD 1.50 per pound when the U.S. exchange rate increased to above NZD 0.70.”

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